GC

Wrong Again Mainstream, Thanks for Playing...

by Justin Nation - September 27, 2001, 12:15 pm PDT
Source: Forbes.com

In a flabbergastingly innacurate and plain inept piece of written horse manure Forbes sticks a foot in its mouth... Better link now for hate mail!

While the mainstream press has often had a hard time covering the video game industry it doesn't ever seem to tire of trying. Now, once again, a "gifted" member of the press has managed to compile yet another proud steaming turd of analysis and confusion concerning Nintendo.

Desperately searching for a point in the midst of a muddled collection of facts and reasoning that defy logic we have a few gems to be found such as this:

"Since there may be a shortage of videogame consoles this holiday season, retail stores may have lots of empty videogame shelves to fill. Ideally, Nintendo should pounce on the opportunity and stock the shelves with its soon-to-be-released GameCube console. But no, the company recently said it won't be able to boost production in order to meet possibly increased U.S. demand."

So apparently even though Nintendo's plans will put more consoles in stores than any of their competitors could manage for launch they're coming up short... but wait, it gets better!

"Hardware is a tough business to make a buck in. Wall Street analysts estimate it costs Nintendo about $380 to manufacture each GameCube console, which will sell retail for about $200. That means the company will lose about $180 on each unit sold. Even if Nintendo actually meets and sells the 1.1 million units expected to be sold in the U.S. by year-end, the GameCube will still be a money-losing product. Unfortunately, Nintendo is counting on GameCube to revive its profits."

So now, aside from the fact the quote of $180 lost per system is absolutely out of left field (Nintendo bristles at even the thought of any loss let alone practically eating half the total cost) they're somehow not working hard enough to put themselves in the poorhouse given the earlier comment?

Be sure to read it all and puzzle at the back-asswards logic contained therein... when the mainstream gets wacky they do it in a big way.

Thanks to many readers for giving up the actual Forbes URL so people disgusted by this article can free to share with the illustrious author!

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